Bimal's Journal

Made a list of

1) 3 contractors to contact
2) Small Banks and/or Credit Union.
3) Hand Wrote the Yellow Signs.
4) Went Around my neighborhood, and found two more vacant properties, one
will be auctioned and the other one I need to find out if it really is
vacant , I saw the mailbox eas open and empty, broken lamp post, couple of
Yellow Page directories lying on the porch.
5) I will write yellow letters to these vacant properties.
6) The signs will go up next week, last two days it has been pouring here.

Bimal

I had 25 signs go up last weekend and now waiting to get calls.

1) Called few small banks and got an idea who will and will not refi a rental property.
What I learnt is
1) These products are inhouse, do not get reported to credit bureau if it
is under an LLC, but if refi is on personal base they will report to
the credit bureau.

2) The debt service ratio should be 1.25 ot above
3) 70% LTV
4) Interest 5% for the first 5 years and then the rates depend upon the
then prevailing rate, the amortization is based on 25year loan.
5) Can close in 30 to 45 days.
6) No Pre penalty.

2) Contact few contractors but not able to get hold of the right one.
3) I found four empty properties, got the address of two of the and sent them yello letters with red ink.
4) The other to are bank owned left message for one, will call the other one today.
5) Listened to Jim Rohn.

I am inching closer and closer to my first deal

Any comments or word of motivation will help.

I got one response to my Bandit Sign,placed over the weekend, I called the seller and whose daughter is trying to sell the house which is a 3/1, schools not that great but above average.

When I called I had the lead sheet handy and asked all the questions from the lead sheet, she wants 200K for the house, it is vacant. Not sure if the seller is motivated but will find out tomorrow as I am going to have a look at the house.
While there I will ask how mush they want if I close with all cash. There are also some price buster questions in the book 30 days to real estate.

Let see what happens

I went and looked at the property yesterday,
3/1 , Detached 2 Car Garage, All Taxes are paid, House is free and clear.
Very decent house, daughter is selling for her mother who is 86 years of age and living in a senior center.

I ran comps, comes to around $231,667, My initial offer will be $129,500
Max I will go is 132,500.

I am estimating repairs around $12,000.00+, my fees will be around $5000/-.
But I estimated repairs at 1632 sqft * $10 = $16,320.

Septic tank is not checked but if that is an issue, then I will knock down $25,000/-
of my MAO
Putting an offer tomorrow.

I have to learn how to write a contract with contingency. There are 6 buyers I am going to send the prop info after I put it under contract.

Earnest Money I will put is $100/-.

Will keep everybody posted.

Don't Wish It were Easier, Wish You were Better ---- Jim Rohn

It is so nice to see you still going for it! And I am so happy you are
Going to the edge event Bimal. It changed my investing life and I'm sure you will benefit I will see you there!

Donna, Thanks for stopping buy.

No I want to make this happen, well it is coming slow, but I will continue fighting till I get success. CONSTANT PERSISTENCE is the Key

I am looking forward to the amazing experience at the EDGE and meeting You and all others I have come to know through DG and IE association.

Bimal

Have been busy and haven't had a chance to pop in.

Love your new way of writing your lists! Much more positive!

You still practicing your new way of thinking?

Edge is getting closer...

Karen

Thanks for your feedback.

Ofcourse this is a busy time and I thank for sparing time to visit my post.

I am thinking more on positive side,
Need to form a habit to accentuate the positive thoughts for 16 seconds,
Couple days in between lost it as I need to learn to better handle my circumstances that affects my routine.

Daily I am listening to different Jim Rohns speeches and that is keeping me in positive state of mind.

He always says;
Do Not wish It were Easier
Wish you were Better !!! Vey profound.

Thanks,

Bimal

Hi All,

I placed an offer at $131,400+closing cost.
The offer is verbally accepted, the paperwork will be done around 22nd April.
I already received an email from a cash buyer expressing interest.

The ARV is $236K, I put an add in craigslist for $150k excluding repairs.

Does anyone have a sample contract that I can use to put this deal under contract.

Any input will help.

Regards
Bimal

Just want to make sure you check your numbers Bimal, 18k sounds kinda of high, how do you know the repairs? Have you looked at the prop? or a contractor? Just make sure you know what repairs are & be conservative on them & the ARV. I usually use a rule of thumb of charging 5% of the ARV for my wholesale fee, of course they buyers will tell you if that is too high too.

As far as contracts I have one I use I can send you if you pm me your email ok, you can also use your State's contract realtors use but if not I will send you one ok & I pray that you close this deal you are really close to getting a deal. See you at the Edge!

Thnaks for stopping by and for your suggestions:

1) Yes I visited the property and for interior I looked at each room and the repairs it required, interior paint for all the rooms by square footage,
Bathroom remodelling cost, it needs plumbing for the shower head, paint, new toilet, cabinet, sink etc.Exterior whole house painting, Carpet cleaning cost.
Total repair estimated at: $16,320

2) I have told the seller, I bear the closing cost. Roughly $2500/-
3) Fees 5% of $236K = $11,800

4) I am not looking to make 18K, between 5K - $8K or whatever the buyer is
comfortable to pay, and pass on the remaining profit to the buyer.
5) I am still keeping my fingers crossed, anything happen between now and April 22nd.

6) This deal has taught me where I need to be better and I will work towards it.

7) I will first call my realtor and request for the the Pruchase Agreement and if I do not get it I will om you.

Regards,
Bimal

You got this! Dean technique works. You're 3 ft away from gold.

Keep pushing and now you got the house under contract, you can post bandit signs as well for it for example

3 bed/2 bath
must sell
$120,000
xxx-xxx-xxxx

or you can call up real estate clubs in the area and let them know you are currently working on a screaming deal which is like to be sold in a few days, see if they would be interested if you send it to them (of course obviously they would be interested)

Keep us posted and I wish you all the best on this:)

Hi TC,

It has been awhile, how have you been.
The house is still not under contract as the seller is out vacationing and will be back on 22nd.
I am already in talks with couple of buyers and one has expresses d interest.
I liked your idea to put Bandit Sign to sell.
I am going to present this deal at our next meet REI club meeting.

This is still a far cry before it happens.
Exactly 3' away from Gold.

My bandit signs has been going out since last two weekends, next weekend will be the 3rd weekend. Not much success but everything takes time, it is a game of persistence.

Regards

Amazing experience.

Additionally, my offer got accepted. Initially I had offered 131,400 but now brought it down to 106,500 because one of buyers told me it will cost 40K in repairs so went back to my seller and they agreed on the reduced price. Now I will go to an attorney get the contract reviewed and put the house Under contract.

Two buyers interested. Tonight I will prepare a package to offer it to my buyers.

Hope this works out.

Stay tuned to hear more on this deal.

Final word, the bandit signs are working.

Bimal

Today I signed the purchase contract and put $100/- as down payment..
I kept the check with me, I will either put it under Escrow or give it to my attorney. I stil have to look for an attorney.

The contract was signed at 11am and at 2pm showed the property to a realtor who is the member of same REI club I go to.
Two more buyers are looking the property on Monday.

I have already sent emails to 5 buyers , two of them responded.
One of two buyers who is going to look at the property on Monday, actually responded to my Bandit sign and called me.

I have again put an ad for the property on Craigslist, so far no one has responded but I can wait.

Till now I have sent emails to 4 buyers and left phone message to 4 more buyers.

So I will keep building the buyers list.

Bimal

Yesterday, I sent my agreement to assign to my buyer.

This is my first deal and in last 20 days, I have gained so much experience and got so much education simply by asking any or all people connected to real estate.

This is becoming interesting. Day after day my confidence is growing. The deal is not yet complete but I will end with education and confidence.

More in two days.

Bimal

I am SO excited for you!!!! I cannot wait to hear more of the details!

I just got back from CA a few days ago and have had some things going on, so had not gotten here to catch up! SO very proud of you! Being positive WILL change your life!

It was also fantastic to meet you at The Edge. I just wish we had had an opportunity to talk a little more. Next year we will have to make a point of it.

So very happy for you. Excited to hear more!

Karen

Yes, Things are happening and moving. Yes it takes to be POSITIVE to accomplish what you set your mind to.

It was pleasure to meet with you too. It was funny we kept looking for each other at the EDGE.

Sure we will make it a point to have a chat at the next EDGE.

Great to see you Back, Hope you ahd a nice time in LA.

Regards,
Bimal

The property I have written about in the past few week is under attorney review.

One clarification is needed from the seller is whether the property has a septic tank or cesspool. If it is a cess pool the cost to remove the cesspool and install a septic tank would be substantial, so for the deal to happen I may have to let go off my Assignment fee just so the seller and buyer can be happy. If that happens I will lose about $700/- on this deal which includes attorney fees and some sundry expense I have made.

But for $700/- I will end up with education, thousands of dollar of education provided by so called gurus would not have provided.

Stay tuned form more.

it was great meeting you at the Edge! So happy to read about your deal in the making! Congrats! I'll keep reading your posts to find out about the septic tank issue; hope it all works out for you!

Hi Valerie,

It was nice to meet you too, though briefly.

I will know more tomorrow about the status of the attorney review.
Becuase of this deal I have added few more names to my buyers list.

Working on three more leads, two are buy and hold and one is a shortsale.

Will post any progress on the attorney review and Septic tank tomorrow.

Bimal

Hey buddy so glad to hear you have a deal under contract, however it works out that is a good positive mindset you have that this is all education & making us a better investors. Amazing to meet you at the Edge wish we had spent more time together too we have to hang out more next yr ok will keep watching for your posts my friend

Hi Tony,
My pleasure too to meet you at the EDGE, sure we will plan to have a group dinner next year.
Again this was my first time and I wanted to meet with as many new people as possible so possibly that was the reason we could spend more time together.

The deal I am working is becoming a challenge everyday .

The sellers attorney sent her response and basically mentioned, seller will not pay for the installation of the septic tank has defects, may consider to pay some money towards it, no specific amount..

I sent the attorney review letter and response to that to my buyer to know if he will be interested with the AS/IS condition.

Hmmmm.... Something needs to be done to make this deal happen....

Look how far you've come, since you 1st started your journal many pages ago! Keep up the success that comes your way.

I totally agree with you, no regrets but profoundly happy with what I have achieved.

Inspite of giving the buyer an option to back out, because there is very little money to be made for him after rehabbing.
He still asked me to provide him with all the contracts, and the attorney review letters, more tomorrow .

Bimal

I have been following your progress for awhile. This looks very real and I am so happy for you. I'm learning a lot from this deal as well. Great job. Keep going.

Be your very best always-Judy Williamson

What you focus on is where your energy goes-Kristin

With gratitude,
Patrick

I agree with you it looks real.
Some of the things I am learning through this transaction could not have been possible by reading books or attending education sessions.

I am in the thick of things and learning so much that I didn't know I should have learnt.

Just imagine I made cash buyer friends who are also guiding me on how to proceed and everyday there is something new that is coming up.

My cash buyer is currently reviewing the contracts and the Attorney review letters and have not yet heard back from him, but matter of time.

Important thing go out and take action and this will eventually lead to more education.

Bimal

The buyer is going to the township to get the records on the house to find out the about the sewer system on the house.

I called the township and asked me to submit an OPRA request form to get the history on the house. (Open Public Records Act = OPRA).

Yesterday attended a presentation on how to make short sales deals. Great presenter who explained everything step by step.

This brought into light on basic things I need to learn in RE business.

HI Bimal!! how is it going??? It was wonderful meeting you. I wish you all the success in the world!

Donna,

Thanks for stopping by, well it is going great.
Will be making couple of offers.
Still working on my last deal which is currently under attorney review, because my seller has ordered the history on the house to ensure the house does not have a cesspool. In NJ you cannot sell a house with a cesspool.

The deal will not come to fruition if turns out the house has a cesspool.

It was a pleasure meeting with you too and Thanks for the good wishes, I need it.

Bimal